Procedures for registration of labor regulations in 2021

A. General laws on procedures for registration of labor regulations

1. Legal basis

Labor Code 2019

Decree No. 145/2020/ND-CP detailing and guiding the implementation of a number of articles of the labor code on labor conditions and relations.

Decision No. 338/QD-LDTBXH on the announcement of administrative procedures newly promulgated, amended, supplemented and abolished in the field of labor and salary within the scope of state management functions of the Ministry of Labor – War Invalids and Social Affairs.

Decree No. 28/2020/ND-CP stipulating penalties for administrative violations in the field of labor, social insurance and hiring Vietnamese workers to work abroad under contracts.

2. Procedures for registration of labor regulations

Subjects of registration of labor regulations

According to Article 69 of Decree No. 145/2020/ND-CP, which guides Article 118 of the Labor Code 2019, the employer must issue labor regulations. If there are 10 or more employees, the labor regulations must be in writing. If there are less than 10 employees, it is not compulsory to issue written labor regulations but must agree on the content of labor discipline and material responsibility in the labor contract.

According to Clause 1, Article 119 of the Labor Code 2019, employers with 10 or more employees must register their labor regulations at the specialized labor agency of the People’s Committee of the province where the employer is located in the employment registration business.

Therefore, if the employer has 10 or more employees, the employer must issue a written labor regulation and register this labor regulation at the specialized department of People’s Committee of the province where the employer registers its business.

3. Deadline for registration of labor regulations

According to Clause 2, Article 119 of the Labor Code 2019, within 10 days from the date of issuance of the labor regulations, the employer must submit a dossier of registration of labor regulations to the competent agency.

4. Jurisdiction

For enterprises with 100% domestic investment, the employer can choose to submit their application to the Department of Labor, War Invalids and Social Affairs at the District level or to the Department of Labor, War Invalids and Social Affairs of the province/city where the business is registered.

Foreign-invested enterprises must register their labor regulations at the Department of Labor, War Invalids and Social Affairs of the province/city where the employer registers its business

5. Procedures

Step 1: Enterprises prepare documents according to legal regulations

Dossier for registration of labor regulations includes:

(a) An application for registration of labor regulations;

(b) Labor regulations;

(c) Written comments from the representative organization of employees at the grassroots for the place where there is a representative organization of grassroots employees;

(d) Documents of the employer with regulations related to labor discipline and material responsibility (if any).

Step 2: Within 10 days from the date of issuance of labor regulations, enterprises shall submit 01 application for registration of labor regulations to the competent authority under one of the following forms:

(a) Submit your application through the competent authority’s online public service portal.

(b) Directly submitted to the competent authority.

(c) Submit the application by post to the competent authority’s address.

Step 3: Within 07 working days from the date of receipt of the application for registration of labor regulations, if the contents of the labor regulations are contrary to the law, the specialized department of the province People’s Committee shall notify and guide enterprises to amend, supplement and re-register.

6. Effect of labor regulations

According to Article 121 of the Labor Code 2019, the labor regulations will take effect 15 days after the competent authority receives a complete application for registration of labor regulations.

In case the employer recruits less than 10 employees and issues the written internal labor regulations, the effect of labor regulations shall be decided by the employer in the internal labor regulations.

Note:

Please note that, in accordance with Clause 2, Article 18 of Decree No. 28/2020/ND-CP stipulating:

2. Imposing fines ranging from VND 5,000,000 to VND 10,000,000 on employers that commit one of the following violations:

  1. a) Failing to have written labor regulations when employing 10 or more employees;
  2. b) Failing to register labor regulations with the competent authority;
  3. c) Using labor regulations that are not yet effective or have expired;
  4. d) Handling labor discipline, compensation for damage not in accordance with the procedures and statute of limitations in accordance with provisions of the law;
  5. d) Temporarily suspending the employee’s work in contravention of the law.”

In case the enterprise fails to register the labor regulations in accordance with the law, the enterprise may be fined from VND 5,000,000 to VND 10,000,000 for administrative violations.

B. The scope of works of LMP Lawyers, the disadvantage if the client do it by themselves, the advantages if client is supported by LMP Lawyers

1. Scope of works

For registration of labor regulations, LMP Lawyers shall assist clients in performing the following tasks:

(a) Advising clients on legal issues related to the content of the labor regulations;

(b) Preparing a list of documents and information to be provided by the client in order to draft a dossier that complies with the law and the licensing authority’s requirements;

(c) Submitting the dossier on behalf of the client to the licensing authority;

(d) Monitoring the status of the application, promptly discussing with the processing officer as soon as additional adjustments are required.

(e) Receiving results on behalf of the client and delivering the results to the client.

2. Disadvantage if clients do it themselves

With many years of experience in assisting businesses to register labor regulations, LMP realize that clients may face the following risks if clients carry out the procedures for registration of labor regulations by themselves:

(a) The fact that legal documents are not clear or a provision of this legal document can be amended, supplemented, replaced or guided by other legal documents may cause difficulties to the client in determining the legal basis for the proceeding. This will result in a failure to verify that the contents of the labor regulations are complete and in compliance with the law.

(b) Clients may not declare correctly as required by law and competent authority due to inexperience in filing documents. This makes clients take a long time to complete the procedure, affecting the progress of implementing the client’s business plans.

(c) The client misidentifies the competent authority to receive the application for registration of labor regulations.

(d) The client does not closely monitor the application processing situation, leading to the inability to promptly handle the adjustment and supplement of the dossier upon request from the licensing authority.

3. Advantage if supported by LMP Lawyers

When clients are supported by LMP Lawyers, clients will receive the following advantages as follows:

(a) Clients save a lot of time in the licensing procedure because clients simply have to provide LMP with the information and documents required by LMP.

(b) The procedure is carried out quickly and accurately and in compliance with the law.

(c) Getting enthusiastic advice and support from LMP Lawyers’ experienced professionals.

Note: The content presented above is for reference only. The aforementioned content may no longer be relevant depending on the time and audience. For any detailed consultation requests, please contact LMP Lawyers.

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